Attorneys for three creditors filed a petition Monday to force Baltimore real estate developer Brandon Chasen into bankruptcy, a move that could pressure the young business mogul to turn over his possessions as a way of repaying his debts.
The move comes two months after a federal bankruptcy judge forced Chasen’s construction company, Chasen Construction LLC, into Chapter 11 bankruptcy, which allows entities to reorganize to repay their debts. The same petitioners are now pursuing Chasen himself, seeking to liquidate his assets in a Chapter 7 proceeding.
Once a major force in the Baltimore housing market, Chasen planned a $100 million national expansion of the namesake Chasen Cos. brand. He received several local leadership awards and recognition from national publications for building one of the country’s fastest-growing companies. Then, facing financial headwinds in the wake of the COVID-19 pandemic, he scaled back his plans beginning in 2023 and shrank the company.
Last year, the firm’s legal troubles accelerated. Chasen Cos. faces multiple lawsuits from lenders and contractors alleging millions of dollars in unpaid bills and late loan payments.
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Neither Chasen nor his attorneys have responded to multiple requests for comment. His business partner, Paul Davis, has also not responded.
Planned Chasen Cos. development projects have gone dormant in the last year, their shells left to gather dust in several Baltimore communities. Neighborhood boosters have complained that the sites — many in highly traversed areas — have drawn illegal dumping, trespassing and other activities that disturb the local quality of life.
The bankruptcy petitioners include Sandy Spring Bank, which awarded Chasen Cos. a nearly $34 million construction loan in 2022 to convert a downtown skyscraper, One Calvert Plaza, into luxury apartments. Tensions rose between them in March when Chasen Cos., after defaulting on the loan, transferred what might be the real estate company’s most valuable asset — a 2007 Gulfstream G200 jet — to a Utah-based trustee without making progress on the arrears.
Earlier this month, a court ordered a property for a stalled development at the border of Fells Point and Harbor East back to auction after a weekslong court battle. The Chasen Cos. subsidiary that owns the property at 1400 Aliceanna St. filed for bankruptcy in March, halting a prior auction. The subsidiary has agreed to dismiss the case.
Chasen Cos. is also behind on hundreds of thousands of dollars in city water bills, according to Baltimore’s public database. Court records show the company hasn’t paid at least $345,000 in city taxes, either.
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Meanwhile, tenants at Chasen Cos. buildings — occupying as many as 1,800 housing units in Baltimore — have reported difficulty getting in touch with the company to renew leases and, in some cases, pay rent. Bay Property Management has taken responsibility of several of the complexes. Chasen Cos. also owns apartments in Virginia Beach and Florida.
Earlier this month, during a conference call with a group of creditors in the Chasen Construction LLC bankruptcy case, Assistant U.S. Trustee Gerard Vetter noted that no company representative had showed up to defend its interests.
Vetter said Chasen is the managing member of the construction arm and is still believed to be the best point of contact. The call ended after 12 minutes, when it became clear that Chasen would not be making an appearance.
Baltimore Banner reporter Greg Morton contributed to this article.
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